Market Minute: Volatility $VIX indexes decline into the "calmer" zone

Following the September 9, 2015 Market Minute titled "Volatility drops ahead of Q4", the main U.S. volatility indexes have all dropped back to their "calmer" zones as the favourable 4th quarter starts to unfold.

After a short-term upward bounce in August and September, the VIX, VXD and the VXN have all declined back into a favourable range.

The S&P 500's VIX has dropped below 22, the Dow's VXD is well under the critical 20 mark and NASDAQ's volatility index (VXN), is now around 19, four points below the key 23 line.

Bottom line: Lower volatility levels are favourable for the U.S. equity indexes as it suggests higher levels are coming for the S&P 500, Dow and NASDAQ in the 4th quarter.

We expect the S&P 500 to reach 2120 to 2130, 17,750 to 18,000 for the Dow and 5,200 for NASDAQ by year-end.